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More Info on IRS Amendment
In an earlier post I said I would not comment on this obvious no brainer
amendment, but then Richard Maxwell, Chair of the AERC Legal Committee
sent some supporting information, and I forwarded it to ridecamp, and
now, after some delay, our AERC CPA, Omar Bardales, sent me the attached
post that should futher emphasize the necessity of approving the IRS
Amendment to our Articles of Incorporation. FYI:
from Omar Bardales:
To: "Randy H. Eiland" <firstname.lastname@example.org>
Date: Tue, 20 Oct 1998 12:34:28 -0700
Subject: Changes to Articles of Incorporation
"Hello Mr. Eiland,
I apologize for not getting back to you sooner. I did not check my
e-mail for a week and then I was out of the office most of last week.
In order to address the concerns regarding the upcoming amendment votes
by the membership let me try to clarify some issues.
1) American Endurance Ride Conference, Inc. is a tax-exempt organization
under Internal Revenue Code section 501(c)(3) and has been since
December 7, 1988.
2) The completed IRS audit of AERC for fiscal year end November 30,
1995's closing letter stated that AERC continued to qualify as a
tax-exempt organization under the previously mentioned code section.
3) The changes requested by the IRS are adjustments to the Articles of
Incorporation not the By-Laws. The corporate By-Laws are an internal
governing and operating document.
4) The Articles of Incorporation were originally submitted to the
California Secretary of State on April 11, 1972. Over the last 26
years the state of California and the IRS have refined their required
language that needs to be included in the Articles of Incorporation of
all tax-exempt organizations.
5) The IRS is just exercising their muscles by requiring AERC to amend
the Articles of Incorporation in order to conform to current language
being used for all tax-exempt organizations under Code section
6) As I understand the organization, AERC's programs and functions have
always fallen within the parameters of its tax-exempt status and the
change to the Articles of Incorporation should not affect the
functioning of AERC one bit.
7) There are no advantages or disadvantages to the changes being
requested by the IRS other than their potential threat of terminating
AERC's tax-exempt status if the requested changes to the Articles of
Incorporation are not made. I would not take this request by the IRS
Mr. Eiland, I hope this helps you in explaining the changes requested by
the IRS to AERC's membership. If I can be of further assistance to
you or should you have any additional questions or concerns please feel
free to e-mail me or call.
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